Genoa - A merger between Saipem and Subsea 7 “would create a truly global oilfield service giant with over $12.4 billion in revenue,” said Audun Martinsen, head of oilfield service research at Rystad Energy.
Commenting the unconfirmed reports that the Italian and British-Luxembourgish oil and gas contractors may join forces, the think tank’s expert notes that “The combined entity would have the world’s largest fleet of subsea installation vessels and be the largest provider of SURF services, with a market share of close to 40%. In addition, Saipem has a diverse portfolio including large-diameter pipeline installation vessels, offshore drilling rigs, one of the world’s biggest crane vessels and numerous offshore fabrication yards.”
Such a merger would create the fourth-largest oilfield service company, after Schlumberger, Halliburton and Baker Hughes.Rystad Energy, independent energy research and consulting firm headquartered in Norway with offices across the globe, sees this move as a direct response to recent developments on several fronts in the oilfield service industry.
By combining with Saipem, Subsea 7 would also get exposure to onshore engineering and construction, where Saipem has a solid track record in the petrochemical and liquefied natural gas industries, thus reducing dependence on upstream oil and gas activities.